Policy Types and Coverage Basics
Nationwide offers several auto policies, each with distinct rules about driving vehicles that are not the policyholder's. The two primary categories are Personal Auto and Commercial Auto. Personal Auto policies typically cover liability and optional collision or comprehensive coverage for any vehicle you drive with the owner's permission, provided the owner's name is on the policy or the vehicle is listed as a covered vehicle. Commercial policies usually exclude non‑owned vehicles unless a specific "covered vehicle" clause is added.
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Key Factors That Determine Coverage
To know if a borrowed car is covered, review these elements:
- Ownership status of the borrowed vehicle (owner's name on policy)
- Presence of a "covered vehicle" add‑on or endorsement
- Whether the driver is named on the policy or listed as an authorized driver
- Limits on liability and collision/comprehensive coverage for non‑owned vehicles
How Nationwide Handles Claims for Borrowed Cars
If the policy includes the borrowed vehicle, Nationwide will process claims for liability, collision, or comprehensive damage just as it would for the policyholder's own car. The amount paid depends on the coverage limits and deductibles. If the vehicle is not listed, Nationwide will typically deny liability for the borrowed car, though the policyholder may still be personally liable for damages.
What to Do Before Borrowing a Car
1. Check the policy documents for a covered‑vehicle endorsement or a clause that allows driving non‑owned cars. 2. Confirm the driver's name is included as an authorized driver or that the owner's name is on the policy. 3. Ask the owner if the car's registration and insurance are active. 4. Notify Nationwide of the borrowing arrangement if you plan to use the car frequently; this can prevent coverage disputes later.
When Coverage Is Uncertain
If the policy language is ambiguous, contact Nationwide's customer service or an agent. Provide the vehicle's VIN, registration, and the dates of borrowing. An agent can clarify whether the vehicle falls under the policy's covered vehicles list or if additional coverage is needed.
Summary of Coverage Options
| Coverage Type | Typical Vehicle Inclusion | Action Needed |
|---|---|---|
| Personal Auto with Covered Vehicle Endorsement | Borrowed cars listed by owner name or VIN | Verify endorsement and update policy if necessary |
| Commercial Auto (Standard) | Generally excluded | Add a covered‑vehicle add‑on or obtain separate insurance |
| Personal Auto without Endorsement | Only policyholder's car | Do not drive borrowed vehicles without owner's permission |